Struggling Lyft Proposes To Let Go Over 1K Employees Under Latest Layoff Round, Updates On Restructuring Plan

Ridesharing company Lyft, Inc LYFT updated on its restructuring plans within a week after disclosing its layoff plans.
On Thursday, Lyft disclosed a restructuring plan as part of its efforts to reduce operating costs.
The plan involves terminating approximately 1,072 employees, representing 26% of its employees.
It proposes to scale back hiring and has eliminated over 250 open positions.
Lyft estimates that it will incur a cost of approximately $41 million - $47 million related to severance and employee benefits in the second quarter of 2023.
In the same quarter, it also expects to incur an additional cost associated with stock-based compensation and the related payroll tax expense for employees.
CEO David Risher also outlined plans to restructure the company.
Risher's measures include consolidating Lyft's ride-share operations into three core teams and eliminating "layers of management across the company" so employees are close to leaders, the Wall Street Journal cites Risher's internal note.
Those changes, he added, will result in cost savings that will pass on to riders and drivers in the form of lower prices and higher earnings.
Lyft struggled to gain market share versus Uber Technologies Inc UBER, which gained market share and drivers during the pandemic. Lyft also chose not to diversify beyond transportation and geography, unlike Uber.
Price Action: LYFT shares traded lower by 0.78% at $10.12 premarket on the last check Friday.
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